What is Binary Options Trading?
Binary options are actually very simple to understand, making them a popular choice for beginner traders. One of the most commonly traded instrument is a fixed-return or high-low or otherwise known as an option that provides access to various financial instrurments.
This can be in the form of stocks, indices, commodities and foreign exchange. In other words trading binary options means that you’re trading an underlying instrument (i.e. either a forex pair, stock etc.)
These set of options have a clearly-stated expiration date, time and price known as the strike price. If a trader wagers correctly on the market’s direction and price at the time of expiration, the trader is then paid a fixed return regardless of how much the instrument has moved since the transaction, while an incorrect wager loses the original investment.
Check out an example of a Binary Option trade and how we consistently trade and make hundreds of even thousands of dollars in profit in the video below:
A binary options trader buys a call when bullish on a stock, index, commodity or currency pair, or a put on the same type of financial instruments when bearish. For a call to make money, the market must trade above the strike price at the expiration time. For a put to make money, the market must trade below the strike price at the expiration time.
The strike price, expiration date or time, payout and risk are disclosed by the broker when the trade is first established. For most high-low binary options traded, the strike price is the current price of the underlying financial product. Therefore, the trader is essentially wagering whether the price on the expiration date or time will be higher or lower than the current price it is at.
Binary Option Trading in India
In India it is legal to trade forex with Indian Exchanges such as the like NSE (National Stock Exchange of India Limited), BSE (Bombay Stock Exchange), MCX-SX (Metropolitan Stock Exchange of India Limited) where these exchanges currently offer 4 pairs (USD/INR, JPY/INR, GBP/INR, EUR/INR) in Derivatives (Futures and Options Segment).
So if you are trading with Indian Brokers whom have membership with the above mentioned Indian Exchanges it is perfectly legal.
However when it comes to other financial derivatives such as various other currency pairs – USD/JPY, GBP/USD, USD/CAD which are amongst the most traded forex currencies in the global market, as local Indian brokers do not deal with them, they are as such inaccessible to Indians. Various other instruments that can most definately grow one’s wealth such as binary options trading, margin trading, CFDs (Contract for Differences) and others are also not offered by local Indian brokers.
However one way to circumvent this gray area is by using other reputable global brokers such as IQ Options or 24 Options who are fully regulated and as such are accountable brokers who have been in the business for more than 10 years.
They offer the means for Indian citizens to access the global financial markets by using their own platforms. As these are brokers who are regulated in the European Union (EU) for example and are open to accept worldwide traders, Indian traders can use them to open an account and once the verification process is complete can trade with them successfully.
Withdrawals and deposits are also taken care of using various digital wallets services accessible to Indian citizens, such as Skrill or Neteller and the use of widely accepted credit or debit cards. Tens of thousands of Indian traders are currently using these exact platforms with no problems and are earning a significant income doing so, with the easy access available online.
Here are the TOP 5 detailed list of brokers you can use to trade binary options and various other financial instruments if you’re based in India successfully :
Preferred Binary Option Broker for Indians
Our number one (#1) choice though if you’re in India and looking to trade and access an unlimited number of instruments such as stocks, forex and binary option trading would be IQ Option. It’s a broker that is fully regulated in the European Union (EU) and has more than 40 million of traders who use it.
It’s also one of the few platforms currently who process withdrawals in under 12 hours upon submission – meaning your withdrawal from your brokerage account is available in your bank account in no time at all! That is truly the mark of a broker you can trust. As of May 2020, IQ Option is available for access to traders in 213 countries and counting – including India.
Although Binary Options trading in India falls in the gray area – the attractive returns a trader can obtain (such as Return on Investments of more than 90% per trade) makes it very attractive for most traders to explore this method to grow their wealth.
However it’s important to do so with a reputable broker as in recent years a number of unregulated and unscrupulous brokers have shaded a dim view of binary options by squandering clients money.
This is exactly why choosing the right, reputable and regulated broker by the European Union financial oversight bodies such as IQ Option means that your deposit and trading account is in safe hands and protected by the law at all times.
Conclusion | Is Binary Option Trading Legal in India?
In conclusion, although binary option trading falls in the grey area – it is neither allowed nor banned in India, traders are still able to access and trade this very lucrative trading instruments from India and able to make deposits and withdrawals on the platform with the use of the right broker such as IQ Options.
Do always keep in mind that trading with an unregulated broker could mean the loss of your deposit or complication when it comes to withdrawal processing – as such always trade with a recognised and regulated broker.
With that we wish you the very best in your trading endeavours and happy trading in 2020!